RETAIL GLOSSARY

Anchor store: A major retailer chosen for its ability to drive traffic to the mall or shopping center in which it’s located.

Automatic reordering system: Program that reorders merchandise when in-store supplies fall below a predetermined level.

Big-box store: Large stand-alone store specializing in one category of merchandise (e.g., Home Depot).

Category killer: National retail chain that is dominant in its product category—usually by offering an extensive selection at low prices–to the point of putting smaller players out of business.

Centralized buying organization: Company in which all buying decisions for all the stores in the company are made by one central office.

Destination retailer: Retailer to which customers will make a special trip, even if it entails going out of their way.

FIFO: First in, first out; method of stock rotation in which the goods that were received first are sold first.

Free-standing store: Store that’s not part of a shopping center or a mall.

Forward stock: Merchandise that is kept on the selling floor.

Gross leasable area (GLA): Total floor space available for retail sales.
Hard goods: Nontextile products.

Impulse items: Products that are not planned purchases.

Loss leader: Item that is priced below cost to attract customers who will then presumably purchase other, profitable products.

Market area: Geographic area from which a store draws its customers.

Planogram: Diagram, drawing, or other visual description of a store’s layout, including placement of particular products and product categories.

Point-of-purchase (POP) display: Advertising display placed alongside the merchandise it is promoting or at the checkout area.

Point-of-sale (POS) system: Combination of hardware and software that records customers’ purchases, accepts payments, and adjusts inventory levels.

Reserve stock: Merchandise that is not kept on the selling floor.

Soft goods: Textile products.

Traffic driver: Marketing material that isn’t a direct response vehicle but rather serves to draw customers to a store.

Under-the-counter stock: Merchandise that is kept under the counter or in drawers rather than on open display, usually because the items are easily shoplifted.

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